Bitcoin (BTC) has experienced a 4.5% decline in the past week, reaching a monthly low of $65,000. This drop in the digital currency’s value has been attributed to a surge in selling from mining entities.
In a recent report by CryptoQuant, analysts pointed out that the number of BTC transferred from Bitcoin mining entities to exchanges has hit a two-month high. This spike in selling activity has coincided with a decrease in mining revenues due to lower transaction fees.
On June 9, btc.com mining pool saw a record hourly transfer of over 3,000 BTC to the Binance exchange. The following day, miners sold at least 1,200 BTC through over-the-counter desks, marking their highest daily volume since March. Major mining companies like Marathon Digital have also intensified their selling, with Marathon Digital selling 1,400 BTC in June, representing 8% of its total holdings.
The decrease in Bitcoin miner revenues can be traced back to the halving event. Daily miner revenues have dropped to around $35 million, a 55% decline from the peak of $78 million in March. The current daily transaction fees for Bitcoin have also decreased significantly, with median transaction fees staying low in USD terms despite increased network activity.
Despite the decline in revenues, the Bitcoin network’s hashrate has remained relatively stable, only decreasing by 4% since the halving in April. A high hashrate signals that miners require more computing power, energy, and time to validate transactions and add blocks to the blockchain. The pressure on miners is evident as they compete for reduced block rewards under these conditions.
According to CryptoQuant analysts, a period of low miner revenues and high hashrate typically indicates potential price bottoms for Bitcoin. It remains to be seen how low BTC can go before a market resurgence occurs, but the increased selling pressure from miners poses a significant challenge for the digital asset’s price stability.
The recent surge in selling from Bitcoin mining entities has placed downward pressure on BTC’s price, with miners struggling to maintain profitability following the halving. As the market adapts to these conditions, the future outlook for Bitcoin remains uncertain, with potential price fluctuations on the horizon.